A Multivariate Model of Power In The Relationship Among Suppliers And Resellers of U.S. Forest Products Entering Selected Markets of The European Union

John M. Guerin, Robert W. Rice

Abstract


Issues relating to power in marketing decision-making in forests products trade are seldom analyzed and are poorly understood. Consequently, no reliable analytical models are in place. This paper presents the results of a univariate and a multivariate statistical analysis that describes power in the relationship between different types of intermediaries for three countries in the European Union (EU). Understanding this dimension of the channel relationship will assist forest products firms in developing effective policies for dealing with intermediaries in the EU.

To analyze power, a survey instrument identified eleven areas of responsibility/power among suppliers and resellers of U.S. hardwood, softwood, and softwood plywood in the United Kingdom, Germany, and the Netherlands. The results clearly illustrated that resellers from the EU countries perceived that they hold more responsibility/power than their U.S. suppliers over the majority of marketing decisions. In general, the results of a univariate analysis found that on a broad level there were major differences between resellers that took title versus resellers that did not take title. The largest differences between these two groups were among the variables associated with distribution and pricing.

The results of a multivariate analysis indicated that power among resellers can be summarized by two factors termed "Strategic Planning Responsibility" and "Service Responsibility." The analysis indicated that the difference in perceived power between resellers that take title versus those who do not take title is in the strategic planning dimension, where emphasis is on pricing and distribution responsibility.


Keywords


European Union;factor analysis;marketing;power;resellers

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